FlyerTalk Forums - Katrina to Kill Continental This Year?

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- - Katrina to Kill Continental This Year? (https://www.flyertalk.com/forum/continental-onepass-pre-merger/468601-katrina-kill-continental-year.html)

Quote:

Originally Posted by cAAl

Interesting. These two positions seem to be the offspring of radically different ideologies. On one hand, the anti-oil company notion of capping their profits. On the other, the environmentally unfriendly desire for the proliferation of oil refineries.

It's actually a shame more people can't hold two views that aren't exclusively either left or right.

Quote:

This is extra bad news since they've already used up the bulk of storm names for 2005, there's only 8 names left!
Nate
Ophelia
Philippe
Rita
Stan
Tammy
Vince
Wilma

In case anyone was wondering, if we have a storm after Wilma, the names go like this:

Alpha
Beta
Gamma
Delta

and so on. :eek:

If Katrina takes down CO, which is very unlikely IMHO, she sure won't be the only one going. :(

Quote:

Originally Posted by HMizzle

If we can eliminate some of the red tape and make it a bit easier and more worthwhile to build a refinery or two it would greatly benefit us.

Very good point. Can I build it in your back yard?

Quote:

Originally Posted by channa

Very good point. Can I build it in your back yard?

That's always the sticking point isn't it? But aren't there communities out there that would welcome the good paying jobs that came with it? I mean that's a heck of a stimulus package for an area wouldn't you think? Maybe I'm wrong.

Actually you can't...cause I live in downtown KCMO and there just isn't room.

Now we could always bulldoze the abandoned tank farms surrounding EWR and rebuild what has essentially already been there.

How 'bout Crawford?

Quote:

Originally Posted by channa

Very good point. Can I build it in your back yard?

How 'bout Crawford? :D

Quote:

Originally Posted by IAH_FLYER

In case anyone was wondering, if we have a storm after Wilma, the names go like this:

Alpha
Beta
Gamma
Delta

and so on. :eek:

Nope... in the rare event that they run out of names before the season's out, then they go to the top of next year's list.

More about naming hurricanes: http://www.nhc.noaa.gov/aboutnames.shtml

Quote:

Originally Posted by AlphaSigOU

Nope... in the rare event that they run out of names before the season's out, then they go to the top of next year's list.

More about naming hurricanes: http://www.nhc.noaa.gov/aboutnames.shtml

No, when it comes to Atlantic Basin tropical systems, they do revert to Greek letters when the full list is exhausted. This has yet to happen although it's becoming obvious it will need to happen this year. Only in some regions of the Pacific do they cycle names from one list to the next where there's an abundance of systems each year.

In any event, returning to topic, any word on how Katrina's impact on fuel is impacting CO directly ...and how CO is dealing with fuel costs differently from the other carriers?

Even though LUV is 85% hedged, they're paying more than they expected...they're hedged in crude oil, but they use jet kerosene A...and just like gasoline, with the refinery shut-downs, jet fuel spiked over 20% while crude rose <10%. Still alot better than no hedge, but I know its pissing them off...BTW not a one of the legacy carriers can make it long term with the combo of today's fuel and today's fares; sometihng has to give. I would guess, if you think fuel is going to stay up here, book ASAP to beat the coming fare hikes.

Quote:

Originally Posted by Whadayano

Good point, although WN doesn't rely solely on crude hedges. Most jet fuel hedging strategies (including those at WN) also use heating oil contracts in addition to crude contracts, since the price of heating oil sometimes mimics the price trends of diesel and JetA. For instance: http://www.solarc.com/content_files/..._Southwest.pdf

Another problem is the expanding "crack spread" between the price of crude and the price of refined JetA. The spot price of JetA is now something like $90/bbl, which is about $25 more than the price of crude. Until this summer, that spread was more like $8 to $10 per bbl. The crack spread as a percentage is increasing at least as fast as the price of the underlying crude. Lots of profit in JetA right now. ;)